The Federal Government has revealed its plan to transfer its 40% stakes in the 11 Power Distribution Companies (DisCos) to state governments in a bid to forestall the persistent power shortages plaguing the country.
The Federal Government through the Minister of Power, Adebayo Adelabu gave the hint on Friday in a post via its verified X page.
He also hinted that in exchange for handing over FG’s 40% stake to states, the latter will swap their share of Niger Delta Power Holding Company Limited (NDPHC) to FG.
The FG holds a 40% stake in DISCOs, privatized about a decade ago. Each of these companies operates across three or more states, playing a crucial role in the country’s power distribution infrastructure.
He tweeted, “Yesterday, I met with Abia State Governor, Dr. Alex Otti and shared our short, medium, and long-term strategies. We’re committed to collaborating closely with state ministries of power/energy to tackle challenges in the distribution segment, considering its retail nature.
“As Minister of Power, I stress the crucial role of state governments in transforming the power sector. State involvement is essential for improving infrastructure, reducing metering gaps, enforcing bill collection, rural electrification, tackling power theft, and securing the right-of-way for transmission lines.
“To enhance state involvement, we’re exploring the idea of unbundling regional Discos into different states for more localized oversight. We’re also looking into financial collaboration between federal and state governments, potentially involving a swap of stakes in DISCOs with state stakes in the Niger Delta Power Holding Company.
“Our vision includes active collaboration in rural electrification. I encourage states to establish rural electrification boards in coordination with our Rural Electrification Agency. State support in providing distribution transformers and replacing weak power lines is crucial for maintaining reliable power supplies” he tweeted.